State-owned rail freight company Transnet’s Rail Infrastructure Management entity (TRIM) during its latest Investec Engagement that took place on March 14, says that it plans to release a B Network Prospectus by the third quarter of this year, following consultations with the Department of Transport (DoT) regarding the network’s commercial potential.

South Africa’s railway network is divided into two primary categories: the A Network and the B Network.

The A Network comprises the country’s most critical rail corridors, which connect major economic hubs such as mines, ports and metropolitan centres. The B Network includes smaller, lower-traffic lines, many of which are either underutilised, damaged, closed or traverse rural and remote areas.

TRIM believes that the commercialisation of the B Network – about 9 000 km – has significant potential to contribute to the broader strategy of revenue generation and network revitalisation.

The entity characterises the B Network as comprising rail corridors with value and investment appeal that are uncertain or yet to be fully assessed.

In collaboration with the Public Sector Participation Unit, a joint undertaking between the DoT, Development Bank of Southern Africa and National Treasury, TRIM plans to conduct a comprehensive evaluation of these lines, segmenting the B Network into strategic, non-strategic and redundant corridors, ahead of the finalisation of the investment prospectus.

The prospectus is expected to outline the condition of individual B Network lines, identify corridors suitable for agricultural or mining freight, describe opportunities for private-sector involvement in operations and rehabilitation, and set out potential business cases and areas where government support or partnerships may be available.

Market observers anticipate a positive reception to the prospectus, with several investors reportedly ready to explore the opportunities it will present.

“The need is vast, as are the opportunities for private investors seeking to channel funds into initiatives that will benefit South Africa as a whole,” public–private partnership (PPP) specialist Gap Infrastructure Corporation (GIC) CEO Roelof van den Berg stated in a press release issued on April 14.

“A clear pathway is being developed for investors wanting to participate in the modernisation of the country’s rail network,” he noted, adding that investment opportunities were not confined to rail tracks, including those within the B Network.

Van den Berg argued that the real value proposition might be the development of supporting infrastructure.

“This includes high-capacity terminals, upgraded signalling systems, efficient loading infrastructure and corridors designed for future expansion, as well as surrounding housing [and] commercial developments, and industrial zones that could be catalysed by improvements to the country’s logistics network,” he said.

“Deliverability by infrastructure developers will be key,” he added.

Although TRIM has not publicly disclosed whether it is in talks with infrastructure investors, it has identified additional areas beyond the B Network that will require modernisation, and for which it hopes to attract private-sector participation.

However, no specific project details have been released yet.

Van den Berg suggested that, before any large-scale infrastructure drive, government must establish a robust investment framework built on insights from previous PPP initiatives.

He noted that, fortunately, South Africa is not starting from zero – similar investment frameworks have been successfully implemented in other countries.

He suggested that reforms such as the Luxembourg Rail Protocol to the Cape Town Convention were already influencing the global financial landscape for rail investment, offering a sound platform for future initiatives.

Van den Berg said that by strengthening legal protections for rolling stock lenders and lessors, these frameworks help mitigate the risks traditionally associated with cross-border financing, thus making rail investment more attractive to private capital.

The introduction of a smarter, sturdier rail ecosystem where the public and private sectors work in tandem is emerging. Such cooperation would enhance risk mitigation, streamline financing, and ensure regulations meet international benchmarks, Van den Berg noted.